Which products could be affected by the port strike?

The First longshoremen’s strike at major ports on the East and Gulf Coasts Nearly half a century away, there could soon be a shortage of bananas and more expensive imported cherries in U.S. grocery stores. Both fruits are among the more than 100 food categories that depend on the now closed businesses, and the labor dispute is also likely to delay car deliveries.

How badly will American consumers and the U.S. economy be affected by the strikes? immediate interruption of the ports The company, which handles about half of the country’s freight container trade, is depending on the length of the work stoppage, which began on the first day. According to Morgan Stanley, about 46% of imports into the U.S. and 37% of imports are transported by water.

“Every day that this goes on, there is a backlog of containers and ships,” American Farm Bureau Federation economist Daniel Munch told CBS MoneyWatch. “A three to five day strike will take two weeks to end. If it goes into the three-week range, it will take early January to finish.”

Foods likely to be affected in the near future include seafood, coffee, and fruits and vegetables grown outside the United States. And while retailers who likely stocked up beforehand are immune to an immediate impact, “bananas will eventually expire, as will frozen seafood.” “I’ll thaw out,” Munch said.

The strike, depending on its duration, will be felt by consumers and farmers who rely on the affected ports to export containerloads of soybeans and poultry, the economist said, urging both sides to work toward a solution.

“Shortages are likely to occur within two to three weeks,” Andrew Coggins, clinical professor of management and management science at Pace University’s Lupine School of Business, told CBS MoneyWatch. “It’s a big deal, especially if it lasts a long time, because so much of what we use every day has traveled on ship or on water at some point in its life, or at least some components,” Coggins said.

The impact on U.S. consumers will not be immediate, as companies have learned to maintain backup supplies during the pandemic.

“We used to rely heavily on just-in-time logistics. When Corona broke out and the goods didn’t arrive on time from China and elsewhere and the dock workers were sick, that slowed everything down,” Coggins notes.

Which products will be affected by the port strike?

According to the Agriculture Department, more than 75% of U.S. bananas arrive at ports managed by the International Longshoremen’s Association (ILA). Aside from perishable fruits, nearly 90% of imported cherries, 85% of canned foods, 82% of hot peppers and 80% of chocolate that arrive via water vessels are unloaded from containers at these ports, Munch noted.

New York Gov. Kathy Hochul warned of a possible banana shortage on Monday, saying at a news conference at Port Authority headquarters, “I don’t want to be in a position to say, ‘Yeah, we don’t have bananas,’ but.” we could reach this point.

Much of the state’s food supply is Shipping is by truck or rail from Upstate and other statesor Canada and Mexico, and medicines are being flown in, Hochul said.

But the auto industry could feel a more immediate impact, as Hochul warns potential buyers to call ahead.

“If you’re expecting a new car this week, you may want to discuss this with your dealer. For example, it may not arrive in the next few weeks,” she warned.

Imported drinks are also at risk from port strikes

Beverages are also at risk of becoming scarce or subject to price increases, with 80% of imported beer, wine, whiskey and Scotch and 60% of rum arriving at ports on the East and Gulf Coasts, the Agriculture Department noted.

Retailers and importers of nonagricultural goods had accelerated shipments in anticipation of the strike, and some ships were diverted to West Coast ports where workers are not among the strikers.

“Our raw materials that we export and Walmart will definitely be affected,” Coggins said. Some overseas goods could be rerouted to Mexico and sent by rail or truck, he said.

According to Morgan Stanley, many raw materials that go into a range of products, such as base metals, plastics and machine parts, are transported through ports on the East and Gulf Coasts.

The strike could also prove to be a problem for American farmers and U.S. agricultural exports, leading to a domestic oversupply of U.S.-grown goods.

“Approximately 14% of all U.S. agricultural exports by waterway, by volume, would be at risk,” Munch wrote. “Over a one-week period, the potential value of disrupted container agricultural exports is estimated at $318 million.”